Types Of Insurance in UAE 2021 : This pandemic life from the past one and a half year has reminded us that safety and security are one of the most important parts of every human being out there.
To provide that safety and security there are some companies which provide us Insurance which can help us when things go wrong. So today we are going to discuss about the types of Insurance in the UAE and which type of insurance is suitable for which type of people.
Table of Contents
What Is Insurance ?
First of all you before we dive in to the types of insurance. We need to know what is insurance is all about.
Insurance is a safeguard which helps from the risk of loss, damage, theft, or any other unknown certainties which happen in our life. Insurance helps in providing protection, All you have to do is just pay a monthly fee or a yearly fee to the company.
For example, If there is an health problem and you have to be admitted to the hospital immediately and as we all know that the corporate hospitals charge huge money for treatment. So there might be a risk of financial loss.
This is where Insurance comes in, If you have Health insurance then almost all the bill amount will be managed by the company itself. So this is the benefit of having an insurance. Now let’s type the insurances included in UAE.
Types Of Insurance in UAE 2021 You Should Know
UAE ( United Arab Emirates ) has a wonderful insurance sector with local and international providers. Because of so many insurance sectors it is considered as GCC’s largest insurance market.
There are different types of insurance which are available to UAE residents, These insurance’s are designed to meet the necessary needs for the residents.
1. Health Insurance
One of the most important Insurance in the UAE is health insurance and it is quite mandatory for the residents of Dubai and Abu Dhabi. Health Insurance covers the whole medical costs such as consultations, surgical expenses, lab tests, prescription drugs along with dental costs sometimes. This coverage is determined with the user’s salary and designation.
This insurance is quite suitable for the medical emergencies. Because we never know what happens tomorrow and health insurance is a must for everybody. Even though the health department handles the health insurance process. But there are private health insurance companies as well like Allianz and Cigna Global which provide health insurance to the residents.
2. Auto Insurance
Anyone who is with a vehicle in UAE then Auto Insurance is a must for the carriers. Auto Insurance offers a higher level of protection and covers every incidents which include the vehicle’s damage or even if it stolen. Road assistance coverage and off-road incidents are also included in this insurance.
This insurance is quite suitable for the people who have a vehicle. Even the premium completely depends on the type of the vehicle, level of the coverage, and driver history.
3. Life Insurance
Life Insurance is a best policy which provides a good payment which is also known as death benefit. Some other life insurance also covers disability or critical illness as well. Apart from this the optional extras which are hospitalization and family income benefits are also included.
The Premium of this insurance completely depends on the age. This insurance is quite suitable for the people whose family is dependent on a person’s income. In that cases, Life Insurance is a must.
We never know what happens in the next moment, Then this life insurance will provides you with enough security. This insurance can also be useful in terms of retirement or giving up the work due to disability.
The Life Insurance Premiums completely depends on lifestyle factors. Many insurance companies are offering different choices to the users. They can select range of investment options so that the users can gain the maximum returns on the payment.
4. Property Insurance
Home or a property is one of the most important commodities. If there is any damage caused by fire, earthquakes, theft, and floods. If you have property insurance then it covers the structural repairs, and it also protects your personal belongings in case of any damage or theft.
This insurance is quite suitable for the people who have a own home or a property. This insurance provides an extra bit of cash when it is needed.
If the property is rented to your tenants, Then you can also purchase additional coverage. The premium covers home based accidents or rental loss. This will also vary because of the risk factors as well
5. Travel Insurance
It is quite common in UAE , that travelling outside the country is quite common. To cover the travel expenses travel insurance is a very good idea for that. In this insurance, The user can cover canceled or missed flights, if your baggage is lost then it can be covered as well.
Emergency accommodation is one of the premium features of the Travel Insurance and if the user is travelling to another place for visiting the doctor then Medical expenses can also be covered.
Most insurance also cover Covid-19 related expenses as well. There are some exclusions as well like high risk trips and sports activities are excluded.
6. Income Protection Insurance
In this insurance, the prospects who are unemployed or suffering with any illness. The Income protection insurance provides the prospects with enough support, Many companies in the UAE have designed this policy to suit the needs of the prospect.
This insurance covers protection against temporary, and permanent illness and disability as well.
In the category of the must have Types of insurance in UAE 2021: The Property Insurance, Health Insurance, Life Insurance and Motor Insurance come under this category. This insurance are must for the people of UAE.
There is also an other category which is Commercial based Insurance. In this Insurance we have Liability Insurance, Employee Benefits Insurance and Financial Insurance. Let’s see about them in detail:
7. Liability Insurance
This insurance is typically for business. The Insurance is compulsory for many industries. Even Businesses can take up this insurance and this is helpful for professional negligence or product liability.
Liability is nothing but taking responsibility for products sold or manufactured.
8. Employee Benefits Insurance
Many Businesses run under many employees and they may need an insurance to cover work-related issues. Like if an accident happens related to work, Then this Employee Benefit Insurance comes to play. This insurance is offered by many companies in UAE, Even the Employee Life insurance is also provided by the companies.
9. Financial Insurance
This Insurance covers the financial losses which happen because of the theft of funds placed in belonging to the employer.
10. Engineering insurance
This Type of insurance covers the risks which happen in the industry. Mostly all the insurance companies offer all-risk policy that combines all forms of insurance in an specific package.
So these are all the important Types Of Insurance in UAE 2021. As mentioned UAE Insurance market is one of the most largest insurance market in GCC(Gulf Cooperative Council) and there are almost 62 insurance companies in UAE in which 35 companies come under national and 27 companies are international.
Back from 2017 the insurance market has increased by 12% when compared other OECD nations. Now Health insurance and motor insurance are one of the biggest industries in the UAE. Even the local providers are offering sharia complaint insurance which is known as Takaful insurance.
The Insurance is regulated by Insurance Authority in UAE. The DFSA(Dubai Financial Services Authority) and the Abu Dhabi Global Market(ADGM) regulate the insurance at regional level. The health departments in Dubai and Abu Dhabi regulate the health insurance process. Emirates Insurance Association handles most of the insurance companies in UAE.
If you want to more details about the insurance then there are some tools for comparing every insurance offered in the UAE and they are Yalla Compare and Insurance Market. These tools provide us the best info and compare various forms of insurance along with commercial insurance products as well.
So these are all the details of types of insurances offered in UAE. If we have any other info or update regarding this insurances and its products then we will definitely update it to you.